DECEMBER 6, 2000
The rout continues for EM.TV
WEDNESDAY morning brought no respite for EM.TV on the Frankfurt Stock Exchange as the company's shares dropped another 22% in the course of the morning trading, dipping under 7 Euros ($5.90) in value for the first time as investors continuing to push for a change of management at the company. This will largely depend on the attitude of the bankers who are currently underwriting EM.TV's loans. If they continue to have faith in Thomas Haffa he may survive with a severely weakened company but if the share price falls much more and the value of the company continues to drop the bankers may become worried that the company will not be able to meet its obligations.
The value of the company is significant in that Haffa currently intends to hold on to 26% of the shares in the Formula One group of companies. While there may be no direct effect on the sport, the continuing problems of Haffa is not going to reflect well on Formula 1, which is trying to portray itself as a solid and stable business enterprise. The sport is sound but the image may not be...